Danish pension fund AkademikerPension said it will not invest in SpaceX's upcoming IPO.
The fund described SpaceX as overvalued and raised concerns about Elon Musk's extensive control over the company.
It also said several US pension funds share similar concerns about the company's governance structure.
Danish Pension Fund Shuns SpaceX IPO Over Valuation, Governance Concerns
Danish pension fund says SpaceX's valuation and governance structure make the company too risky for investment
Summary
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A Danish pension fund managing about $25 billion in assets has said it will not invest in SpaceX's planned initial public offering (IPO), citing concerns over the company's valuation and corporate governance.
According to Bloomberg, AkademikerPension believes SpaceX is grossly overvalued and has concerns about its governance structure. The fund said these issues are significant enough that it would blacklist SpaceX even if the company's valuation were lower.
SpaceX, which filed for an IPO on May 20, is targeting a valuation of at least $1.8 trillion. However, AkademikerPension's chief investment officer, Anders Schelde, said the company should not reasonably be valued above $1 trillion.
Governance Concerns Take Centre Stage
Schelde said the fund's concerns go beyond valuation. He pointed to Musk's expected control of around 80% of voting rights while also serving as chief executive, chief technology officer and board chair.
According to report, concerns about SpaceX's governance are also shared by some US pension funds. In a letter published earlier this month, public pension officials from New York and California raised concerns about what they described as an "extreme governance structure" at the company.
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Why Fund Is Staying Away
AkademikerPension said investors are being asked to accept a very low risk premium for a company facing significant uncertainty. The fund argued that SpaceX's pricing appears to be driven more by Musk's reputation and vision than by underlying financial realities.
Despite its criticism, the fund said it respects SpaceX's technology and engineering capabilities. Schelde said the decision not to invest is not a reflection of the company's products or innovation.
The pension fund added that it is more likely to consider investing in OpenAI if the company eventually goes public and joins major market indices. AkademikerPension has previously attracted attention for selling its Tesla stake and reducing its exposure to US government bonds due to concerns over risk and governance.